Regarding employee stock options, which of the following is/are true?
a. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate.
b. Total compensation cost is the number of options the firm expects to vest times the value per option.
c. Firms amortize total compensation cost over the requisite service period, which is the expected period of benefit.
d. The requisite service period is usually the period between the grant date and the vesting date.
e. all of the above
E
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To which of the following entities must a company report if it sells its stock on the organized stock market?
a. American Institute of Certified Public Accountants (AICPA) b. American Accounting Association (AAA) c. International Accounting Standards Board (IASB) d. Securities and Exchange Commission (SEC)
The sum of cash generated or used by operating, investing, and financing activities should equal the difference between the beginning and ending balance in current assets
Indicate whether the statement is true or false
Intangible benefits are not physical, but can be measured and expressed in financial terms
Indicate whether the statement is true or false
Some costs that possibly could be traced directly to cost objects are nonetheless classified as indirect costs because:
A. Generally accepted accounting principles require some costs to be treated as indirect. B. Such practice results in a more accurate accumulated cost for the object. C. Such costs cannot be traced to objects in a cost-effective manner. D. All of the answers are correct.